Underquoting by real estate agents is priority for Fair Trading

UNDERQUOTING by real estate agents is a top priority for Fair Trading, NSW Commissioner Natsaha Mann has declared.

The announcement comes after high-profile estate agent Josh Tesolin was suspended by the consumer protection regulator.

Tesolin was accused of underquoting on more than 100 properties, dummy bidding at auctions, falsifying documents and breaches of agent conduct rules.

“NSW Fair Trading has conducted an extensive investigation into this matter, led by our Strata and Property Taskforce,” the Commissioner said.

“The suspension of the licences of Joshua Tesolin and Tesolin Consulting Pty Ltd reflects the seriousness of the contraventions we believe have been committed and the importance of maintaining public confidence in the property sector.”

Tesolin – who was suspended for 120 days until December 6 – had until the end of August to respond to the accusations.

Since the news of Tesolin’s suspension broke, NSW Fair Trading has outlined its annual compliance and enforcement agenda.

This also includes a focus on unlawful rental evictions and lockouts, mandatory disclosures by strata agents as well as the underquoting purge.

Fair Trading says it wants to lift standards, so businesses comply before enforcement is necessary.

More than 1,600 investigations were undertaken 1,800 inspections carried out last year that resulted in 1,000-plus penalty notices worth almost $1.6 million. Fair Trading issued over 1,200 warnings, and 150 education actions.

Serious enforcement measures included 29 licence cancellations, 39 temporary disqualifications, and nearly half a million dollars in penalties imposed by NSW Fair Trading’s Disciplinary Action Unit.

 “These priorities are about making sure NSW Fair Trading is focusing its efforts where they matter most,” Mann said.

“Whether it’s cracking down on illegal evictions, enforcing product safety standards, holding agents to account for underquoting or taking action where strata agents don’t act in the best interests of owners, our message is clear – we are watching, and we will act.”

In New South Wales, a real estate agent could be issued with a penalty infringement notice of $2,200.

Further action could be taken depending on the circumstances. If an agent is found guilty at trial, they could face a fine of $22,000. They may also lose the full commission and fees for property/properties underquoted.

In Victoria, real estate agents could face a penalty of at least $36,000. They may also lose commission in serious cases.